7 companies to sign Cost-Sharing agreement of Zafarana’s solar power plants within days

The New and Renewable Energy Authority (NREA) will sign a cost-sharing agreement with the seven companies set to establish electric feed-in tariff projects within days.

A source in NREA said seven companies will build solar power plants in the Zafarana area with a total capacity of 305MW. A total of five companies will produce 250MW, one company will produce 25MW, and another company will establish a plant with a capacity of 30MW.

The cost-sharing agreement is one of the five agreements eligible investors are expected to sign to establish new and renewable energy projects. According to the electric feed-in tariff system, the costs-sharing agreement also involves the cost of connecting the planned solar power plants with the national electric grid and the infrastructure of Banban area in Aswan sharing on electric feed-in tariff system.

The source said the seven companies will pay 30% of the value of the cost-sharing agreement within 10 days from the date of signature. This includes the construction of roads and transmission stations, which will transfer the energy from the new plants.

According to the agreement, the investors will pay the value of the construction of roads worth EGP 3,100 per MWh, as well as the value of the connection with transmission stations at EGP 583,000 per MWh.

The source said the 39 companies that signed the cost-sharing agreement in Benban area were notified to pay 70% in three installments. The investors will pay the first installment in March, the second installment in June, and the last installment in September 2016.

A large number of solar energy companies will pay 70% of the cost-sharing agreement under letters of guarantee. A letter was sent to the companies to notify them of the due dates of payment, to assure the reimbursement for the construction of transformer stations and rehabilitation of the site.